Analyzing ABIOMED (ABMD) & The Competition

ABIOMED (NASDAQ: ABMD) is one of 82 publicly-traded companies in the “Advanced Medical Equipment & Technology” industry, but how does it weigh in compared to its competitors? We will compare ABIOMED to similar businesses based on the strength of its profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Risk and Volatility

ABIOMED has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500. Comparatively, ABIOMED’s competitors have a beta of 0.89, indicating that their average share price is 11% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ABIOMED and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ABIOMED 0 1 7 0 2.88
ABIOMED Competitors 252 1812 3248 105 2.59

ABIOMED presently has a consensus price target of $167.57, indicating a potential downside of 2.68%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 6.76%. Given ABIOMED’s stronger consensus rating and higher possible upside, research analysts plainly believe ABIOMED is more favorable than its competitors.

Profitability

This table compares ABIOMED and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ABIOMED 16.13% 13.03% 10.98%
ABIOMED Competitors -327.91% -35.29% -12.43%

Institutional and Insider Ownership

89.7% of ABIOMED shares are owned by institutional investors. Comparatively, 53.0% of shares of all “Advanced Medical Equipment & Technology” companies are owned by institutional investors. 7.0% of ABIOMED shares are owned by insiders. Comparatively, 17.2% of shares of all “Advanced Medical Equipment & Technology” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares ABIOMED and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
ABIOMED $474.78 million $110.92 million 101.88
ABIOMED Competitors $2.02 billion $430.74 million -70.96

ABIOMED’s competitors have higher revenue and earnings than ABIOMED. ABIOMED is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

ABIOMED beats its competitors on 8 of the 13 factors compared.

ABIOMED Company Profile

ABIOMED, Inc. is a provider of temporary percutaneous mechanical circulatory support devices. The Company offers care to heart failure patients. The Company operates in the segment of the research, development and sale of medical devices to assist or replace the pumping function of the failing heart. The Company develops, manufactures and markets products that are designed to enable the heart to rest, heal and recover by improving blood flow to the coronary arteries and end-organs and/or temporarily performing the pumping function of the heart. The Company’s product portfolio includes the Impella 2.5, Impella CP, Impella RP, Impella LD, Impella 5.0 and AB5000. The Company’s products are used in the cardiac catheterization lab (cath lab), by interventional cardiologists, the electrophysiology lab, the hybrid lab and in the heart surgery suite by heart surgeons.

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